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Property Transfers of Related Parties to Related Parties: While this form primarily concerns property tax reassessment exclusions, it includes sections to explain the nature of the transfer and confirm that no change in beneficial ownership has occurred, supporting the transfer tax exemption claim
What happens when you pay someone else’s property taxes? Paying someone else’s property taxes does not automatically grant you ownership of the property In fact, California law provides no meaning to this act comparable to gaining ownership interest, whether payment is made by mistake or good-will
How to transfer your property without triggering a reassessment There are, however, a few key exclusions that can be used to avoid this trigger and protect you from added tax liability A common strategy is the proportional interest exclusion This allows individuals who own real property to transfer it to or from a legal entity (such as an LLC)
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